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Nairobi, December 11, 2008

The cabinet has today approved the Policy, legal and institutional framework for Public Private Partnerships ( PPP ) in the country. The framework provides for the modalities under which the private sector can undertake for a specified period of time to provide a service or good for the benefit of the public.

Under the PPP model Kenya will be able to attract private sector investments in financing infrastructure projects such as water, energy, roads and other transport services. Through PPP’s the country can leverage public sector financial resources with private sector investments.

PPP’s will especially be critical for the financing of the flagship projects under Vision 2030.

Under the framework the private sector can enter into a management contract, a lease, a concession or a build-own-operate and transfer agreement with the government.

Meeting under the chairmanship of President Mwai Kibaki at State House Nairobi the cabinet approved the establishment of a PPP steering committee to oversee the process.

The cabinet also approved a Privatization Programme that will see a number of public corporations enter into partnerships with the private sector.

The government will therefore be inviting the private sector and members of the public to participate in partnerships and or shareholding in some of the following State corporations

1. Kengen-where the government will sell more shares to the public

2. Kenya Pipeline Company

3. Kenya Ports Authority- by way of construction of a container terminal at Eldoret and outsourcing of Stevedoring services and development of berths 11-14.

4. Chemelil Sugar Company

5. Sony Sugar Company

6. Nzoia Sugar Company

7. Miwani Sugar Company

8. Muhoroni Sugar Company

9. Kenya Tourism Development Authority and some of its hotels.

10. National Bank of Kenya

11. Consolidated Bank

12. Development Bank of Kenya

13. Kenya Wine Agencies Ltd

14. East African Portland Cement Company

15. Kenya Meat Commission

16. New Kenya Co-operative Creameries

The privatization of sugar factories is especially critical to ensure that Kenya meets requirements under the COMESA sugar safeguards

Today’s cabinet meeting also approved the participation of the private sector in the East African Marine System ( TEAMS) Ltd.

The project involves the provision of a fibre-optic communications network via Fujairah in the United Arab Emirates. Countries envisaged to be served include Tanzania, Uganda, Sudan, Rwanda, Burundi, Ethiopia and Somalia. The project is estimated to cost Kshs 8 billion.

The cabinet also approved the enactment of the Kenya National Youth Council Bill. The bill establishes the National Youth Council.

The functions of the council shall be to register, coordinate and monitor all youth groups, youth focused community based organizations and youth serving non-governmental organizations.

The National Youth Council shall act as the voice and bridge to ensure that the government and other policy makers are kept informed of the views and aspirations of the youth.

The council shall also promote relations between youth organizations and other bodies and ensure that the youth gain access to resources and services appropriate to their needs.